ITO, New Delhi V. Sh. Deepak Kumar Gupta, Delhi

ITA 4038/DEL/2015

• Counselvise Citation: 403820114 RSA 2015
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2010-2011
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B-1: NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM & SHRI SUDHANSHU SRIVASTAVA, JM SL.NO. ITA/IT(SS)A, CO NO. APPELLANT RESPONDENT ASSTT. YEAR/ PERIOID ASSESSEE BY 1 . 4038/DEL/2015 ITO, WARD - 59(3), ROOM NO. 313, D, BLOCK, VIKAS BHAWAN, NEW DELHI-110 002 DEEPAK KUMAR GUPTA, PROP. ROYAL TEXTILE INDUSTRIES, 3632/2, NARANG COLONY, TRI NAGAR, DELHI 110 035 PANAFFPG9149 2010 - 11 NONE 2 . 5383/DEL/2014 DCIT, CIRCLE - 6(1), NEW DELHI MGF MOTORS LTD., MGF HOUSE, ASAF ALI ROAD, NEW DELHI 110 002 PAN:AABCM4247R 2010 - 11 NONE 3 . 5625/DEL/2014 ITO, WARD - 47(4), NEW DELHI. ANJANA DHINGRA, E-192, WINDOSR PARK, 5, VAIBHAV KHAND, INDRA PURAM, GHAZIABAD 201 010 PAN AEFPD0819M 2006 - 07 NONE 4 . 4105/DEL/2014 ITO (TDS) MORADABAD LIC OF INDIA, BRANCH KHATIMA MELA GHAT ROAD, KHATIMA, U.S. NAGAR 2008 - 09 NONE 5 . 5492/DEL/2014 DCIT, CIRCLE-10(1) NEW DELHI DELHI MAGZINE DISTRIBUTORS PVT. LTD. 110, BANGLA SAHIB MARG, NEW DELHI PAN:AAACD0072G 2010 - 11 NONE 6 . 3942/DEL/2014 ITO, WARD - 9(4), NEW DELHI SUPREME LEASE FINVEST PRIVATE LIMITED, 801, INTERNATIONAL TRADE TOWER, NEHRU PLACE 2000 - 01 NONE NEW DELHI 110 019 PAN AABCS8098J 7 . 3827/DEL/2014 ACIT HISAR CIRCLE, HISAR QUALITY FOILS (INDIA) PRIVATE LTD. 3, INDUSTRIAL DEVELOPMENT COLONY, HISAR PAN :AAACQ0304Q 2010 - 11 NONE 8 . 5245/DEL/2014 ITO, WARD - 18(1), NEW DELHI UNITED WINGS PVT. LTD., B-128, OKHLA INDUSTRIAL AREA, PHASE-II, NEW DELHI-110 048 PAN:AAACU4902G 2006 - 07 NONE 9 . 5488/DEL/2014 ACIT, BHIWANI CIRCLE, BHIWANI PREM CHAND & COMPANY, SCF-12, RANI TALAB, JIND 126 102 PAN AAJFP1053H 2010 - 11 NONE 10 . 5014/DEL/2015 ACIT, CIRCLE - 39(1), ROOM NO. 903, 9 TH FLOOR, E- 2 BLOCK, CIVIC CENTRE, NEW DELHI ANGOORI DEVI MEENA 273, 7 TH FLOOR, CATEGORY-B, PLOT NO. 49, NEELKANTH APARTMENT, SECTOR- 13, ROHINI, DELHI 110 085 PAN AGBPM4624K 2008 - 09 NONE PER SUDHANSHU SRIVASTAVA, JM ALL THESE APPEALS FILED BY THE REVENUE WERE FIXED B ECAUSE APPARENTLY, IN ALL THE CASES, THE TAX EFFECT IS BELOW RS. 10 LAKHS WHICH W OULD BE EVIDENT FROM THE DISPUTED ADDITIONS IN THE GROUNDS OF APPEAL RAISED BY THE RE VENUE. THE DISPUTED ADDITIONS BEFORE US ARE AS UNDER:- S.NO. ITA NO. NAME OF THE PARTY DISPUTED ADDITIONS BEFORE US 1 . 4038/DEL/2015 ITO VS. DEEPAK KUMAR GUPTA RS. 14,44,757/ - 2 . 5383/DEL/2014 DCIT VS. MGF MOTORS LTD. RS. 25,71,467/ - 3 . 5625/DEL/2014 ITO VS. ANJANA DHINGRA RS. 4,50,000/ - 4 . 4105/DEL/2014 ITO VS. LIC OF INDIA RS. 3,92,690/ - 5 . 5492/DEL/2014 DCIT VS. DELHI MAGZINE DISTRIBUTORS PVT. LTD. RS. 24,69,719/ - 6 . 3942/DEL/2014 ITO VS. SUPREME LEASE FINVEST PRIVATE LIMITED RS. 15,00,000/ - 7 . 3827/DEL/2014 ACIT VS. QUALITY FOILS (INDIA) PRIVATE LTD. RS. 9,29,385/ - 8 . 5245/DEL/2014 ITO VS. UNITED WINGS PVT. LTD. RS. 20,74,584/ - 9 . 5488/DEL/2014 ACIT VS. PREM CHAND & COMPANY RS. 20,19,450/ - 10 . 5014/DEL/2015 ACIT VS. ANGOORI DEVI MEENA RS. 31,57,800/ - 2. THE CBDT IN ITS CIRCULAR NO. 21/2015 DATED 1 0 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPARTMENTAL A PPEALS TO THE ITAT AT RS. 10 LAKHS WHICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UNDER :- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S. NO. APPEALS IN INCOME - TAX MATTER MONETARY LIMIT (IN RS.) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETAR Y LIMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFERENCE, WE REPRODUCE PARAGRAPH 10 BELOW :- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APP LICABLE TO THE APPEALS UNDER CONSIDERATION BEFORE US. 5. LEARNED CIT-DR SHRI RAVI JAIN WHO APPEARED AT THE TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE R EPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMINISTRATIVE CIT FOR WITHDRAWING THESE APPEALS BECAUSE THE APPEALS WERE FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF T HE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THESE APPE ALS BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRE CEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THESE APPEA LS AND, THEREFORE, IF IN THE SUBSEQUENT YEARS SIMILAR ISSUE ARISES BEFORE THE IT AT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 6. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, TH E FACTS OF ALL THE CASES AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE APPARENTLY, THE TAX EFFECT INVOLVED IN THESE APPEAL S OF THE REVENUE IS BELOW RS. 10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF O RDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS. 10 LAKHS OR, IN AN Y OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE A MISCELL ANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLV ED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE I SSUE INVOLVED IN THESE APPEALS BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOS E YEARS IS MORE THAN RS. 10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 7. IN THE RESULT, ALL THE ABOVE MENTIONED APPEALS O F THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/12/2015. SD/- SD/- (J. SUDHAKAR REDDY) (SUDH ANSHU SRIVASTAVA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 31/12/2015 VEENA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI. DATE 1. DRAFT DICTATED ON 23.12.2015 2. DRAFT PLACED BEFORE THE AUTHOR 28.12.2015 3. DRAFT PLACED BEFORE THE OTHER MEMBER 4. APPROVED DRAFT COMES TO THE SR.PS/PS 5. FILE SENT TO THE BENCH CLERK 6. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 7. DATE ON WHICH FILE GOES TO THE AR 8. DATE OF DISPATCH OF ORDER.